Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-15751 | ||
Entity Registrant Name | EMAGIN CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 56-1764501 | ||
Entity Address, Address Line One | 700 South Drive | ||
Entity Address, Address Line Two | Suite 201 | ||
Entity Address, City or Town | Hopewell Junction | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 12533 | ||
City Area Code | 845 | ||
Local Phone Number | 838-7900 | ||
Title of 12(b) Security | Common Stock, $.001 Par Value Per Share | ||
Trading Symbol | EMAN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 39.4 | ||
Entity Common Stock, Shares Outstanding | 71,119,183 | ||
Documents Incorporated by Reference | The information required by Part III of this Report, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Stockholders to be held in 2021 , which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Report relates. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001046995 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 8,315 | $ 3,515 |
Restricted cash | 2,111 | |
Accounts receivable, net | 5,314 | 3,966 |
Account receivable-due from government awards | 1,013 | |
Unbilled accounts receivable | 253 | 155 |
Inventories | 8,379 | 8,832 |
Prepaid expenses and other current assets | 943 | 1,130 |
Total current assets | 26,328 | 17,598 |
Property, plant and equipment, net | 21,132 | 8,100 |
Operating lease right - of - use assets | 50 | 3,729 |
Intangibles and other assets | 126 | 160 |
Total assets | 47,636 | 29,587 |
Current liabilities: | ||
Accounts payable | 1,206 | 1,302 |
Accrued compensation | 1,628 | 1,778 |
Paycheck Protection Program loan - current | 982 | |
Revolving credit facility, net | 1,875 | 2,891 |
Common stock warrant liability | 4,622 | 23 |
Other accrued expenses | 1,693 | 1,401 |
Deferred revenue | 425 | 277 |
Operating lease liability - current | 51 | 775 |
Finance lease liability - current | 1,027 | 16 |
Other current liabilities | 757 | 326 |
Total current liabilities | 14,266 | 8,789 |
Other liability - long term | 56 | |
Paycheck Protection Program loan - long term | 982 | |
Deferred Income - government awards - long term | 4,309 | |
Operating lease liability - long term | 3,067 | |
Finance lease liability - long term | 11,783 | 24 |
Total liabilities | 31,396 | 11,880 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,659) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of December 31, 2020 and December 31, 2019. | ||
Common stock, $.001 par value: authorized 200,000,000 shares, issued 68,890,819 shares, outstanding 68,728,753 shares as of December 31, 2020 and issued 50,250,378 shares, outstanding 50,088,312 shares as of December 31, 2019. | 69 | 50 |
Additional paid-in capital | 268,729 | 258,767 |
Accumulated deficit | (252,058) | (240,610) |
Treasury stock, 162,066 shares as of December 31, 2020 and December 31, 2019. | (500) | (500) |
Total shareholders' equity | 16,240 | 17,707 |
Total liabilities and shareholders' equity | $ 47,636 | $ 29,587 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 68,890,819 | 50,250,378 |
Common stock, shares outstanding | 68,728,753 | 50,088,312 |
Treasury stock, shares | 162,066 | 162,066 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, liquidation preference | $ 5,659 | $ 5,659 |
Preferred stock, stated value | $ 1,000 | $ 1,000 |
Preferred stock, shares designated | 10,000 | 10,000 |
Preferred stock, shares issued | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||
Total revenues, net | $ 29,424 | $ 26,726 |
Cost of revenues: | ||
Total cost of revenues | 23,059 | 19,998 |
Gross profit | 6,365 | 6,728 |
Operating expenses: | ||
Research and development | 5,715 | 5,048 |
Selling, general and administrative | 7,567 | 7,251 |
Total operating expenses | 13,282 | 12,299 |
Loss from operations | (6,917) | (5,571) |
Other (expense) income: | ||
Change in fair value of common stock warrant liability | (4,599) | 1,474 |
Interest expense, net | (132) | (201) |
Other income, net | 200 | |
Total other (expense) income | (4,531) | 1,273 |
Loss before provision for income taxes | (11,448) | (4,298) |
Income taxes | ||
Net loss | $ (11,448) | $ (4,298) |
Loss per share, basic and diluted | $ (0.19) | $ (0.09) |
Weighted average number of shares outstanding: | ||
Basic and Diluted | 60,457,652 | 48,132,714 |
Product [Member] | ||
Revenues: | ||
Total revenues, net | $ 25,042 | $ 24,589 |
Cost of revenues: | ||
Cost of revenues | 21,054 | 18,775 |
Contract [Member] | ||
Revenues: | ||
Total revenues, net | 4,382 | 2,137 |
Cost of revenues: | ||
Cost of revenues | $ 2,005 | $ 1,223 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2018 | $ 45 | $ 254,736 | $ (236,312) | $ (500) | $ 17,969 | |
Balance, shares at Dec. 31, 2018 | 5,659 | 45,323,339 | ||||
Exercise of common stock options | 9 | $ 9 | ||||
Exercise of common stock options, shares | 12,500 | 12,500 | ||||
Public offering of common shares, net of offering costs | $ 5 | 3,471 | $ 3,476 | |||
Public offering of common shares, net of offering costs, shares | 4,914,539 | |||||
Stock based compensation | 551 | 551 | ||||
Net loss | (4,298) | (4,298) | ||||
Balance at Dec. 31, 2019 | $ 50 | 258,767 | (240,610) | (500) | 17,707 | |
Balance, shares at Dec. 31, 2019 | 5,659 | 50,250,378 | ||||
Exercise of common stock warrants | $ 5 | 35 | $ 40 | |||
Exercise of common stock warrants, shares | 5,364,997 | 5,364,997 | ||||
Public offering of common shares, net of offering costs | $ 14 | 9,769 | $ 9,783 | |||
Public offering of common shares, net of offering costs, shares | 13,275,444 | |||||
Stock based compensation | 158 | 158 | ||||
Net loss | (11,448) | (11,448) | ||||
Balance at Dec. 31, 2020 | $ 69 | $ 268,729 | $ (252,058) | $ (500) | $ 16,240 | |
Balance, shares at Dec. 31, 2020 | 5,659 | 68,890,819 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (11,448) | $ (4,298) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,112 | 2,046 |
Change in fair value of common stock warrant liability | 4,599 | (1,474) |
Loss on sale of equipment | 19 | |
Stock-based compensation | 158 | 551 |
Amortization of operating lease right-of-use assets | 698 | 538 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,348) | (780) |
Unbilled accounts receivable | (98) | 69 |
Inventories | 453 | (250) |
Prepaid expenses and other current assets | 187 | (255) |
Deferred revenues | 148 | 239 |
Operating lease liabilities | (730) | (554) |
Accounts payable, accrued expenses, and other current liabilities | 353 | (982) |
Net cash used in operating activities | (4,897) | (5,150) |
Cash flows from investing activities: | ||
Purchase of equipment | (1,089) | (1,060) |
Purchase of equipment government grant | (1,411) | |
Proceeds from sale of equipment | 50 | |
Net cash used in investing activities | (2,450) | (1,060) |
Cash flows from financing activities: | ||
(Repayments) borrowings under revolving line of credit, net | (1,016) | 2,891 |
Proceeds from public offering, net | 9,783 | 3,476 |
Change in finance lease liabilities | (17) | (10) |
Proceeds from government grant | 3,505 | |
Proceeds from Paycheck Protection Program loan | 1,963 | |
Proceeds from warrant exercise, net | 40 | |
Proceeds from exercise of stock options | 9 | |
Net cash provided by financing activities | 14,258 | 6,366 |
Net increase in cash, cash equivalents, and restricted cash | 6,911 | 156 |
Cash, cash equivalents, and restricted cash, beginning of period | 3,515 | 3,359 |
Cash, cash equivalents, and restricted cash, end of period | 10,426 | 3,515 |
Cash, cash equivalents, end of period | 8,315 | 3,515 |
Restricted cash, end of period | 2,111 | |
Supplementary Cash Flow Information | ||
Cash paid for interest | 52 | 177 |
Cash paid for income taxes | ||
Non-cash activities: | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 12,706 | $ 50 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business [Abstract] | |
Nature of Business | Note 1 – Nature Of Business eMagin Corporation (the “Company”) designs, develops, manufactures and markets Active Matrix OLED (organic light emitting diode) –on-silicon microdisplays used in military and commercial AR/VR devices and other near-eye imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 – Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. The Company manages its operations on a consolidated, integrated basis in order to optimize its equipment and facilities and to effectively service its global customer base, and concludes that it operates in a single business segment. Reclassification Certain balances on the consolidated balance sheet for the year ended December 31, 2019, have been reclassified, with no effect on net loss (or loss per common share) or shareholders’ equity, to be consistent with the classifications adopted for the year ended December 31, 2020. Use of Estimates In accordance with accounting principles generally accepted in the United States of America (“GAAP”), management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its esti mates and judgments related to , allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies , among others . Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Revenue and Cost Recognition All of the Company’s revenues are earned from contracts with customers and are classified as either Product or Contract revenues. Contracts include written agreements and purchase orders, as well as arrangements that are implied by customary practices or law. Product revenue is generated primarily from contracts to produce, ship and deliver OLED microdisplays. The Company’s performance obligations are satisfied, control of our products is transferred, and revenue is recognized at a single point in time when control transfers to our customer for product shipped. Our customary terms are FOB our factory and control is deemed to transfer upon shipment. The Company has elected to treat shipping and other transportation costs charged to customers as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. As customers are invoiced at the time control transfers and the right to consideration is unconditional at that time, the Company does not maintain contract asset balances for product revenue. Additionally, the Company does not maintain contract liability balances for product revenues, as performance obligations are satisfied prior to customer payment for product. The Company offers a one-year product warranty, for replacement of product only, and does not allow returns. The Company generally offers industry standard payment terms that typically require payment from our customers from 30 to 60 days after title transfers. The Company also rec ognizes revenues under the over time method from certain research and development (“R&D”) activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Progress and revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on an input method of accounting as costs are incurred. Under the input method, revenue is recognized based on efforts expended to date (e.g., the costs of resources consumed or labor hours worked, or machine hours used) relative to total efforts intended to be expended. Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. Any changes in estimate related to contract accounting are accounted for prospectively over the remaining life of the contract. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in deferred revenues as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported as unbilled receivables. Unbilled revenues are expected to be billed and collected within one year. Costs to Obtain and Fulfill a Contract The incidental costs related to obtaining product sales contracts are non-recoverable from customer and, accordingly, are expenses as incurred. The Company capitalizes costs incurred to fulfil its R&D contracts that i) relate directly to a contract or anticipated contract ii) are expected to satisfy the Company’s performance obligation under the contract and iii) are expected to be recovered through revenue generated under the contract. Contact fulfillment costs are expense to cost of revenue as the related performance obligations are satisfied. Government Funding The Company accounts for awards received from the U.S. g overnment for procurement of capital equipment after analysis of the terms of the underlying award contract, and in accordance with contract and equipment purchase milestones and accounting principles for grant accounting. For awards in which the Company will hold title to the underlying equipment, the Company initially records amounts invoiced to the U.S. g overnment for equipment progress payments on the accompanying Consolida ted Balance Sheets as deferred i ncome – government awards – long term and accounts r eceivable - due from government awards. The Company records said progress payments made to capital equipment vendors in Property, plant and equipment. Amounts recorded in deferred income – government a wards – long te rm will be recognized as Other i ncome on the accompanying Consolidated Statement of Operations on a systematic basis as depreciation and other expenses are incurred over the useful life of the capital equipment. See Note 4 of the Notes of the Consolidated Financial Statements for additional details of our government funding. Product Warranty The Company generally offers a one-year product replacement warranty. The standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability, included in other current liabilities, during the years ended December 31, 2020 and 2019 (in thousands ): Twelve Months Ended December 31, 2020 2019 Beginning balance $ 300 $ 423 Warranty accruals and adjustments 333 58 Warranty claims (18) (181) Ending balance $ 615 $ 300 Research and Development Expenses Research and development costs are expensed as incurred. Cash and Cash Equivalents All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. Restricted Cash The Company accounts for cash received pursuant to U.S. g overnment funding, that is legally restricted for procurement of capital equipment, as Restricted Cash on the accompanying Consolidated Balance Sheets. Restricted Cash amou nts are received from the U.S. g overnment in advance of progress payments required for various program related capital equipment purchases and are disbursed by the Company to related equipment vendors. Accounts Receivable The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30 - 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. Allowance for Doubtful Accounts The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. Contract Assets and Liabilities Unbilled Accounts Receivables (Contract Assets) - Pursuant to the over time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled accounts receivable is recorded to reflect revenue t hat is recognized when the cost based input method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Consolidated Balance Sheet. Customer Advances and Deposits (Contract Liabilities) - The Company recognizes a contract liability when it has billed and received consideration from the customer pursuant to the terms of a contract but has not yet recognized the related re venue. These billings in excess of revenue are classified as deferred revenue on the Consolidated Statements of Operations. Inventories Inventories are stated on a standard cost basis adjusted to approximate the lower of cost (as determined by the first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with the Company’s suppliers, and the estimated utility of the inventory. If the Company review indicates a reduction in utility below carrying value, the inventory is reduced to a new cost basis. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation on equipment is calculated using the straight-line method of depreciation over the estimated useful life ranging from three to 10 years. Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. Total intangible amortization expense was approximately $ 9 and $32 thousand for the years ended December 31, 2020 and 2019 , respectively. Leases The Company accounts for leases in accordance with ASC Topic 842: Leases, which we adopted on January 1, 2019. As a lessee, the Company record s a right-of-use asset and a lease liability on the Consolidated Balance Sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provi de an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, and use the implicit rate when readi ly determinable. The Company estimates its incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. Some of our leases include the option to extend or terminate the lease. The Company includes these op tions in the recognition of its right-of-use assets and lease liabilities when it is reasonably cer tain that the Company will exercise the option. Lease expense is generally recognized on a straight-line basis over the lease term. The Company enters into lease agreements for the use of office space, manufacturing facilities, and phone equipment, under both operating and finance leases. Operating leases are included in Operating lease right-of-use assets, Operating lease liability – current and, Operating lease liability – long term in our Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment, net, Finance lease liability – current and Finance lease liability – long term in our Consolidated Balance Sheet. Advertising Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. There was no advertising expense for the years ended December 31, 2020 and 2019 . Shipping and Handling Fees The Company includes costs related to shipping and handling in cost of goods sold. Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. The Company recognizes the effect of income tax positions which are more-likely-than-not of being sustained. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense . For additional details regarding our accounting for income taxes, see Note 11 in the accompanying consolidated financial statements. Net Loss per Common Share Basic loss per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, and convertible preferred stock. Diluted loss per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. In accordance with Accounting Standards Codification (“ASC”) 260, entities that have issued securities other than common stock that participate in dividends with the common stock (“participating securities”) are required to apply the two-class method to compute basic EPS. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security as if all such earnings had been distributed during the period. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. Although the Company paid a one-time special dividend in 2012, the Company does not expect to pay dividends on its common or preferred stock in the near future. In accordance with the Preferred Stock – Series B agreements, the conversion price was adjusted to $0.3033 per share in December 201 9, and the resultant, if converted common shares are reflected in the table of anti-dilutive common stock equivalents below. For the years ended December 31, 2020 and 2019 , the Company reported a net loss and as a result, basic and diluted loss per common share are the same. Therefore, in calculating net loss per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income per common share because their effect was anti-dilutive. The following is a table of the potentially dilutive common stock equivalents for the years ended December 31, 2020 and 2019 that were not included in diluted EPS as their effect would be anti-dilutive: Twelve Months Ended December 31, 2020 2019 Options 4,797,834 5,404,985 Warrants 13,055,773 19,295,773 Convertible preferred stock 18,726,009 18,726,009 Total potentially dilutive common stock equivalents 36,579,616 43,426,767 The above table reflects a revision of the potentially dilutive common stock equivalents that were not included in diluted EPS, associated with the Company’s convertible preferred stock, for the year ended December 31, 2019 , compared to what was previously reported. The C ompany increased such potentially dilutive common stock equivalents from 7,545,333 to 18,726,009 as a result of previously excluding certain common stock equivalents that would be issued as a result of the Company conducting an equity offering priced below the convertible preferred stock’s conversion price. This correction had no impact on any financial statement amounts or EPS. Comprehensive Income (L oss) Comprehensive income (loss) refers to net income (loss) and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net income (loss). The Company's operations did not give rise to any material items includable in comprehensive income (loss), which were not already in net income (loss) for the years ended December 31, 2020 and 2019 . Accordingly, the Company's comprehensive income (loss) is the same as its net income (loss) for the periods presented. Fair Value of Financial Instruments Cash, cash equivalents, accounts receivable, short-term investments and accounts payable are stated at cost, which approximates fair value, due to the short-term nature of these instruments. The asset based lending facility (the “ABL Facility”) is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. The payroll protection plan, or PPP loan is presented on the balance sheet, at cost which equals fair market value due to the short term nature of the loan. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into three-level fair value hierarchy in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the balance sheets at fair value are categorized based on a hierarchy of inputs as follows: Level 1 – Unadjusted quoted prices in active markets of identical assets or liabilities. Level 2 – Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs for the asset or liability. The common stock warrant liability discussed in Note 12 is currently the only financial assets or liability recorded at fair value on a recurring basis, and is considered a Level 3 liability. The fair value of the common stock warrant liability is included in current liabilities on the accompanying financial statements as of December 31, 2020 , as the warrants are currently exercisable . The following table shows the reconciliation of the Level 3 warrant liability measured and recorded at fair value on a recurring basis, using significant unobservable inputs (in thousands ): Estimated Fair Value Balance as of January 1, 2020 $ 23 Fair value of warrants issuance during period - Change in fair value of warrant liability, net 4,599 Balance as of December 31, 2020 $ 4,622 The fair value of the liability for common stock purchase warrants at December 31, 2020 was estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date. Inputs to the model at December 31, 2020 included remaining contractual terms of the warrants ranging from 1.4 to 2.1 years, risk-free interest rates ranging from 0.16% to 2.87% , with no expected dividends, and expected volatility of the price of the underlying common stock ranging from 40.28% to 109.27% . Stock-based Compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. Derivative Financial Instruments The Company evaluates all financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features qualifying as embedded derivatives. For derivative financial instruments accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statement of operations. The Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. Concentration of Credit Risk The majority of the Company’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are made generally on open account while sales to occasional customers are typically made on a prepaid basis. The Company performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company invests surplus cash in a government money ma rket fund that consists of U.S. g overnment obligations and repurchase agr eements collateralized by U.S. government o bligations, which are not insured. To date, the Company has not experienced any loss associated with this risk. Concentrations The Company purchases principally all of its silicon wafers, which are a key ingredient in its OLED production process, from two suppliers located in Taiwan and Korea. For the year ended December 31, 2020 , three customers accounted for 16.9% , 12.8% and 10.9% of net revenues. For year ended December 31, 2019, there were zero customers who accounted for over 10% of net revenues. As of December 31, 2020 , the Company had accounts receivable balances from those three customers who had balances of 22.0% , 17.0% and 9.5% . Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the year ended December 31, 2020 , the Company incurred a net loss $11.4 million and used cash in operating activities of $4.9 million . As of December 31, 2020 , the Company had $ 8.3 million of cash , $1.9 million of outstanding indebtedness and borrowing availability of $2.1 million under its ABL Facility. In addition, the Company has $1.9 million outstanding under a PPP l oan, which may be forgiven if the loan is used for eligible expenses and meets PPP criteria for forgiveness. The pandemic has significantly increased economic and demand uncertainty. It is possible that the current outbreak and continued spread of COVID-19, including any vaccine resistant strains, or any resurgence will cause the economic slowdown to continue, and it is possible that it could cause a global recession. Although vaccines are becoming more widely available, t here is a significant degree of uncertainty and lack of visibility as to the extent and duration of the pandemic and related slowdowns or economic trends. If either were prolonged, demand for our products will be significantly harmed. Although many jurisdictions are now open with social distancing measures implemented to curt ail the spread of COVID-19, we cannot predict the length of time that it will take for any meaningful economic recovery to take place. We also cannot predict whether vaccine resistant strains will lead to additional surges in new cases of COVID-19, or the severity of such surges if/when they occur, such that governmental authorities decide to reimpose quarantines, lockdowns or travel restrictions, which could further materially and adversely affect our results and financial condition. Due to continuing losses, the COVID-19 pandemic, uncertainty regarding the Company’s need or ability to borrow under its ABL Facility, and the expiration of the Company’s At The Market (“ATM”) facility in July 202 0 when the remaining amount available under the facility was used, the Company may not be able to meet its financial obligations as they become due without obtaining additional financing or sources of capital at acceptable terms to the Company . Therefore, in accordance with applicable accounting guidance, and based on the Company’s current financial condition and availability of funds, there is substantial doubt about the Company’s ability to continue as a going concern through twelve months from the date these financial statements were issued. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives . The Company’s plans with regard to these matters include the following actions: 1) focus production and engineering resources on improving manufacturing yields and increasing production volumes, 2) continuing a Work Status Reduction program that began in October 201 9 wherein senior management work status was reduced by approximately 20% , 3) reduce headcount and not replace departed employees, subject to PPP loan restrictions, 4) reduce discretionary and other expenses 5) seek to enter new markets , and 6) considering additional financing and/or strategic alternatives. The Company is reassessing its business plans and forecasts over the next two years. Based on its known cash needs as of March 2021 , and the anticipated availability of its ABL facility, the Company has developed plans to extend its liquidity to support its working capital requirements through the first quarter of 2022. However, there can be no assurance the Company’s plans will be achieved, or that the Company will be able to continue to borrow under its ABL Facility, mitigate the impacts of COVID-19, secure additional financing, and/or pursue strategic alternatives on terms acceptable to the Company, or at all. Recently Adopted Accounting Pronouncements In August 201 8, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) a guidance that adds, amends, and removes certain disclosure requirements related to fair value measurements. Among other changes, this standard requires certain additional disclosure surrounding Level 3 assets, including changes in unrealized gains or losses in other comprehensive income and certain inputs in those measurements. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted the guidance on January 1, 2020, on a prospective basis and such adoption did not have a material impact on the Company’s financial statements. Recently Issued Accounting Pronouncements In June 201 6, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's accounts receivable, and it requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Based on the composition of the Company's receivables, current market conditions and historical credit loss activity, t he Company is currently evaluating the impact of this ASU on the consolidated financial statements. In December 201 9, the FASB issued ASU 2019-12, Income Taxes (Topic 740) as part of its initiative to reduce complexity in accounting standards. This standard simplify the accounting for income taxes. This new guidance is effective for fiscal yea |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 3 – Revenue Recognition All of the Company’s revenues are earned from contracts with customers and are classified as either Product or Contract revenues. Contracts include R&D activities performed pursuant to written agreements and purchase orders, as well as arrangements that are implied by customary practices or law. Disaggregation of Revenue The Company sells products directly to military contractors and OEM’s and they use our displays in a diverse range of applications encompassing the military, and commercial, including medical and industrial, market sectors . Revenues are classified as either military, commercial, consumer or multiple based on management’s knowledge of the customer’s products and markets served by displays or the R&D contract work. Revenues classified as Multiple are for sales to customers that incorporate the Company’s displays in products that could be used for either military or commercial applications. R&D activities are performed for both military customers and U.S. government defense related agencies and consumer companies. Product and Contract revenues are disclosed on the Consolidated Statements of Operations. Additional disaggregated revenue information for the years ended December 31, 2020 and 2019 were as follows (in thousands): Twelve Months Ended December 31, 2020 2019 North and South America $ 16,434 $ 14,566 Europe, Middle East, and Africa 9,834 11,112 Asia Pacific 3,156 1,048 Total $ 29,424 $ 26,726 Twelve Months Ended December 31, 2020 2019 Military $ 21,373 $ 19,033 Commercial, including industrial and medical 1,607 3,224 Consumer 3,383 1,187 Multiple 3,061 3,282 Total $ 29,424 $ 26,726 Accounts Receivable from Customers Accounts receivable, net of allowances, associated with revenue from customers were approximately $5.3 million and $4.0 million as of December 31, 2020 and 2019 , respectively. Contract Assets and Liabilities Unbilled Accounts Receivables (Contract Assets) - Pursuant to the overtime revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled accounts receivable is recorded to reflect revenue that is recognized when the proportional performance method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Consolidated Balance Sheet. Customer Advances and Deposits (Contract Liabilities) - The Company recognizes a contract liability when it has billed and received consideration from the customer pursuant to the terms of a contract but has not yet recognized the related revenue. These billings in excess of revenue are classified as deferred revenue on the Consolidated Statements of Operations. Total contract assets and liabilities consisted of the following amounts (in thousands): 21 December 31, December 31, 2020 2019 Unbilled Receivables (contract assets) $ 253 $ 155 Deferred Revenue (contract liabilities) $ (425) $ (277) During the years ended December 31, 2020 and 2019 , the Company recognized $0.2 million and $0.2 million of revenue related to its contract liabilities that existed as of December 31, 2020 and 2019 , respectively. Remaining Performance Obligations . The Company has elected the practical expedient, which allows disclosure of remaining performance obligations only for contracts with an original duration of greater than one year. Such remaining performance obligations primarily relate to engineering and design services. As of December 31, 2020 and 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was $2.5 million and $1.4 million. The Company expects to recognize $2.3 million of revenue relating to its remaining performance obligations over the next 1 2 months. |
Government Funding
Government Funding | 12 Months Ended |
Dec. 31, 2020 | |
Government Funding [Abstract] | |
Government Funding | Note 4 - Government Funding On July 28, 2020, the Company announced that it had been awarded a $33.6 million contract over the next 33 months from the Department of Defense (“DoD”) to sustain and enhance U.S. domestic capability for high resolution, high brightness OLED microdisplays that will be based on the Company’s proprietary direct patterning technology (“dPd”). This investment is in addition to the $5.5 million award announced on June 11, 2020, under the Department of Defense Industrial Base Analysis (“IBAS”) Program for OLED Supply Chain Assurance and will be used to increase capacity and sustain operations at the Company’s Hopewell Junction, New York, headquarters. These funds will be used to procure key equipment and tooling, and reimburse the Company for certain labor and material costs, which the Company believes will improve all aspects of its OLED microdisplay production, including increased throughput and capacity. Pursuant to the preliminary Technology Investment Agreement the government provided when the award was announced, the Company expects that the government will own the related equipment purchases until the end of the 33 month contract period, at which point the Company can apply to take title. The Company began making payments to related equipment vendors during the fourth quarter of 2020. For accounting purposes the Company considers that it is probable that title will pass to the Company and accordingly will treat this award in a similar fashion as the IBAS award. The Company recognize s the government award s as deferred income – government awards as program milestones are invoiced, and will recognize other income as depreciation and other expenditures are incurred over the useful life of the capital equipment. As of December 31 , 2020, t he Company has received $ 3.5 million for initial deposits required by cap ital equipment vendors. Amounts received, pending payment of deposits to vendors as of December 31, 2020, of $1.1 million are reflected in restricted cash on the accompanying balance sheet. Amounts due from the U.S. Department of Defense pursuant to invoices for capital equipment are presented on the balance sheet as accounts receivable – due from government awards. The total amount invoiced during the year ended December 31, 2020 of $4.4 million is reflected in deferred revenue government awards – long term, and other current liabilities. Additional amounts remaining under the award s will be recorded in a similar fashion and will coincide with the progress payments required under the various capital equipment purchase terms. For the year ended December 31, 2020, t he Company recognized deferred income related to certain overhead expenses, n ot capitalized, of $77 thousand. The terms of various g overnment agreements provide among other items that t he Company must achieve certain yield targets, give priority to military orders and continue to maintain the productive capacity of equipment purchased for up to five years past the completion of the programs. Amounts billed to the government under these programs are recorded as Accounts Receivable – due from government awards on the accompanying Consolidated Balance Sheets. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | Note 5 – Accounts Receivable, net Accounts receivable consisted of the following (in thousands): December 31, December 31, 2020 2019 Accounts receivable $ 5,453 $ 4,105 Less allowance for doubtful accounts (139) (139) Accounts receivable, net $ 5,314 $ 3,966 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, Net [Abstract] | |
Inventories, Net | Note 6 – Inventories, net The components of inventories were as follows (in thousands): December 31, December 31, 2020 2019 Raw materials $ 3,995 $ 2,788 Work in process 1,263 1,561 Finished goods 3,918 5,248 Total inventories 9,176 9,597 Less inventory reserve (797) (765) Total inventories, net $ 8,379 $ 8,832 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 7 – Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2020 2019 Vendor prepayments $ 716 $ 657 Other prepaid expenses 227 473 Total prepaid expenses and other current assets $ 943 $ 1,130 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 8 – Property, Plant and Equipment Property, plant and equipment improvements consist of the following (in thousands): December 31, 2020 2019 Computer hardware and software $ 921 $ 893 Lab and factory equipment 20,554 17,482 Furniture, fixtures and office equipment 59 59 Finance lease - equipment 116 116 Finance lease - manufacturing facility 12,706 - Construction in progress 1,734 2,668 Leasehold improvements 128 60 Total property, plant and equipment 36,218 21,278 Less: accumulated depreciation and amortization (15,086) (13,178) Property, plant and equipment, net $ 21,132 $ 8,100 Depreciation and amortization expense was $2.1 million for year ended December 31, 2020 and $ 1.9 million year ended December 31, 2019 . Amortization expense was $68 thousand and $11 thousand for assets under capital leases for the year ended December 31, 2020 . During 2020, the Company expanded its manufacturing space and signed a 10 -year renewal of the related lease agreement, with two five-year options to renew. The present value of the related lease payment exceeded 90% of the fair value of the underlying asset, classifying this as a finance lease. Formerly, the lease was classified as an operating lease and right of use asset. |
Debt _ Line of Credit
Debt / Line of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Debt / Line of Credit [Abstract] | |
Debt / Line of Credit | Note 9 – Debt / Line of Credit December 31, December 31, (in thousands) 2020 2019 Revolving credit facility $ 1,875 $ 2,891 Less: unamortized debt issuance costs - - Revolving credit facility, net $ 1,875 $ 2,891 On December 21, 2016, the Company entered into an ABL Facility with a lender that provides for up to a maximum amount of $5 million based on a borrowing base equivalent of 85% of eligible accounts receivable plus the lesser of $2 million or 50% of eligible inventory. The interest on the ABL Facility is equal to the Prime Rate plus 3% but may not be less than 6.5% with a minimum monthly interest payment of $2 thousand. The Company is also obligated to pay the lender a monthly administrative fee of $1 thousand and an annual facility fee equal to 1% of the maximum amount borrowable under the facility. As of December 31, 2020 , the interest rate on outstanding borrowings was 6.5% . The ABL Facility renewed on December 31, 2020 and will automatically renew on December 31, 2021 for a one -year term unless written notice to terminate the agreement is provided by either party. In conjunction with entering into the financing, the Company incurred $0.2 million of debt issuance costs including lender and legal costs that were amortized over the original three -year term of the ABL Facility. The ABL Facility agreement contains certain lenders remedies that upon events of default, give the bank the ability to terminate the facility before the scheduled maturity date. Accordingly, the Company classifies borrowing under the ABL Facility as current liabilities on the accompanying balance sheets. The ABL Facility is secured by a lien on all receivables, property and the proceeds thereof, credit insurance policies and other insurance relating to the collateral, books, records and other general intangibles, inventory and equipment, proceeds of the collateral and accounts, instruments, chattel paper, and documents. Collections received on accounts receivable are directly used to pay down the outstanding borrowings on the credit facility. The ABL Facility contains customary representations and warranties, affirmative and negative covenants and events of default. The Company is required to maintain a minimum tangible net worth of $13 million and a minimum working capital balance of $4 million at all times. As of December 31, 2020 , the Company had unused borrowing availability of $2.1 million and was in compliance with all financial debt covenants. For the year ended 20 20, interest expense includes interest paid, or accrued of approximately $57 thousand on outstanding debt. Paycheck Protection Program On June 8, 2020, the Company received a loan under the U.S. Small Business Administration’s ( “ SBA”) Paycheck Protection Program from KeyBank National Association related to the COVID- 19 crisis in the amount of $1.9 million (the “PPP loan”) . Under the PPP loan, the loan has a fixed interest rate of 1% per annum, a maturity date two years from the date of the funding of the loan, and deferral of payments for six months. Pursuant to the terms of the PPP loan, the Company may apply for forgiveness of the loan in an amount equal to the sum of the following costs incurred by the Company during period beginning on the date of first disbursement of the loan and ending on the earlier of (a) the date that is 24 weeks after the date of funding or b) December 31, 2020: payroll costs, any payment of interest on a covered mortgage obligation, payment on a covered rent obligation, and any covered utility payment. The amount of PPP loan forgiveness shall be calculated in accordance with the requirements of the Paycheck Protection Program, including the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), although no more than 40% of the amount forgiven can be attributable to non-payroll costs. The Company used the proceeds for purposes consistent with the PPP, and filed an application for forgiveness with the SBA, in December 202 0. If forgiveness is not granted, future annual minimum loan payments as of December 31, 2020 would be $0.98 million and $0.98 million for 2021 and 2022, respectively . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 10 – Leases The Company leases office and manufacturing facilities in Hopewell Junction, NY under a non-cancelable operating lease agreement. The lease for these facilities, as amended, was to expire in May 2024 and did not contain a renewal option. The lease agreement did not contain any residual value guarantees, or material restrictive covenants. In November 2020, we entered into the 12 th amendment, which will expand the current footprint to approximately 63,000 square feet in 2021 and includes two five-year options to extend. Under ASU 842, the company reassessed the lease from operating to a finance lease for the 12 th amendment. The Company also leases an office facility for its design group in Santa Clara, California. During the fourth quarter of 2019, the Company signed a two-year extension of this lease that expires in October 2021 . The lease agreement does not contain any residual value guarantees, material restrictive covenants or a renewal option. This lease is classified as an operating lease. On May 2, 2019, the Company entered into a three-year finance lease commitment for phone equipment. The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring lease liabilities. We estimate our incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. The components of lease expense were as follows (in thousands): Twelve Months Ended December 31, 2020 2019 Finance Lease Cost: Amortization of right-of-use assets $ 68 $ 11 Interest on lease liabilities 70 3 Operating lease cost 965 986 Short-term lease cost - 58 Total Lease Cost $ 1,103 $ 1,058 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,068 $ 1,012 Financing cash flows from finance leases $ 103 $ 13 Right-of-use assets obtained in exchange for new finance lease liabilities $ 12,706 $ 50 Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 110 Finance lease right-of-use assets 12,677 40 Operating lease right-of-use assets 50 3,729 Finance lease liability, current 1,027 16 Finance lease liability, non-current 11,783 24 Operating lease liabilities, current 51 775 Operating lease liabilities, non-current - 3,067 Weighted average remaining lease terms - finance leases 20.67 years 2.33 years Weighted average remaining lease terms - operating leases 0.84 years 4.42 years Weighted average discount rate - finance leases 6.43% 10.91% Weighted average discount rate - operating leases 7.75% 8.48% Future annual minimum lease payments and finance lease commitments as of December 31, 2020 were as follows (in thousands): Operating Leases Finance Leases 2021 $ 52 $ 1,029 2022 - 1,019 2023 - 1,011 2024 - 1,011 2025 - 1,011 Thereafter - 18,261 Total undiscounted future minimum lease payments 52 23,342 Less imputed interest (1) (10,532) Lease liability (1) $ 51 $ 12,810 (1) Total future lease payments exclude approximately $4.9 million of lease payments related to the Expansion Space portion of the NY Lease that was signed but has not yet commenced as of December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Note 11 – Income Taxes New Tax Legislation On March 27, 2020, the President of the United States signed the Coronavirus Aid Relief and Economic Security Act (“CARES Act”). The CARES Act provides several provisions that effect businesses from an income tax perspective. Due to the history of the tax losses, most of the CARES Act provisions have no current benefit to the Co mpany. The Company can, however benefit from one provision, which allows for the immediate refund of the Alternative Minimum Tax Credit (“AMT Credit”) previously recognized as deferred tax asset. The Company has filed an amendment to claim the AMT Credit and is anticipating a refund of $212 thousand . This tax receivable was recorded during 2017, and is reflected in Prepaid Expenses and Other Current Assets on the condensed consolidated balance sheet. Net loss before income taxes consists of the following (in thousands): For the Years Ended December 31, 2020 2019 Domestic, current $ (11,448) $ (4,298) Total $ (11,448) $ (4,298) The tax effects of significant items comprising the Company’s deferred taxes are as follows (numbers are in thousands): For the Years Ended December 31, 2020 2019 Deferred tax assets: Federal and state net operating loss carryforwards $ 28,153 $ 30,428 Research and development tax credit carryforwards 2,450 2,479 Stock based compensation 1,561 1,632 Other provision and expenses not currently deductible 2,317 1,327 Total deferred tax assets 34,481 35,866 Deferred tax liabilities: Depreciation and amortization (521) (693) Prepaid expenses (68) (195) Total deferred liabilities (589) (888) Less: valuation allowance (33,892) (34,978) Net deferred tax asset $ — $ — The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. As of December 31, 2020 , the Company’s deferred tax assets were generated primarily from the federal and state net operating loss, stock based compensation and research and development tax credits. In assessing the realizability of deferred tax assets, management determined that it is more likely than not that none of the deferred tax assets will be realized. Therefore, the Company has provided a full valuation allowance against the deferred tax assets at December 31, 2020 and 2019 . As of December 31, 2020 and 2019 , the Company had net deferred tax assets before its valuation allowance of $33.9 million and $35.0 million , respectively. During the year ended December 31, 2020 , the Company did not utilize its prior years’ net operating loss carryforwards and the net operating loss of $11.1 million that originated in 1999 expired. As of December 31, 2020 , the Company had federal and state net operating loss carryforwards of $131.9 million and federal research and development tax credit carryforwards of $2.5 million. Pursuant to provisions of the 2017 Tax Cut and Jobs Act, the net operating losses originating in years subsequent to 2017 totaling $14.7 million can be carried forward indefinitely. The federal net operating losses and tax credit carryforwards will expire as follows (in thousands): Net Research and Operating Development Losses Tax Credits 2020 - 2021 $ 28,171 $ 323 2022 - 2025 42,814 319 2026 - 2037 45,866 1,808 No Expiration 15,012 - $ 131,863 $ 2,450 The utilization of net operating losses can be subject to a limitation due to the change of ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating losses before their utilization. The Company has done an analysis regarding prior year ownership changes, and it has been determined that the Section 382 limitation on the utilization of net operating losses will currently not materially affect the Company's ability to utilize its net operating losses. The difference between the statutory federal income tax rate on the Company's pre-tax loss and the Company's effective income tax rate is summarized as follows: For the Years Ended December 31, 2020 2019 U.S. Federal income tax benefit at federal statutory rate 21 % 21 % Change in valuation allowance 9 (6) Permanent differences (8) 7 NOL Expiration - 1998 (21) (26) Other, net (1) 4 Effective tax rate - % - % The Company did no t have unrecognized tax benefits at December 31, 2020 and 2019 . The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2020 and 2019 , the Company recognized no interest and penalties. The Company files income tax returns in the U.S. federal jurisdiction and in certain U.S. states. Generally, the Company’s tax filings are subject to tax examinations by major taxing jurisdictions during the three years period subsequent to the due date of such returns, or if later, when the return is filed. However, due to the Company's operating losses, the utilization of a net operating loss subjects the year that such loss originated to being open for examination by major taxing jurisdictions to which the Company is subject. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Warrants [Abstract] | |
Warrants | Note 12 – Warrants The Company accounts for common stock warrants pursuant to applicable accounting guidance contained in ASC 815, "Derivatives and Hedging - Contracts in Entity's Own Equity" and makes a determination as to their treatment as either equity instruments or a warrant liability based on an analysis of the underlying warrant agreements. Summary of warrants and warrants outstanding: Issued Outstanding Exercise Price Expire 2015 Warrant Issuance 383,500 383,500 2.05 Jun 2021 2016 Warrant Issuance 2,947,949 2,947,949 2.60 Feb 2022 2017 Warrant Issuance (1) 100,000 100,000 2.25 Mar 2022 2017 Warrant Issuance (2) 1,650,000 1,650,000 2.45 Nov 2022 2018 Warrant Issuance (2) 4,004,324 3,974,324 1.55 Jul 2023 2019 Warrant Issuance (3) 6,000,000 4,000,000 0.78 Oct 2024 13,055,773 (1) Issued in conjunction with an unsecured line of credit. (2) Warrants are subject to liability accounting . (3) Private Placement unregistered warrants exercisable six months following issuance. Equity classified warrants The 2015, 2016, and 2019 warrants share similar terms, and the exercise price of the Warrant Shares are subject to adjustment in the event of any stock dividends and splits, reverse stock splits, stock dividends, recapitalizations, reorganizations or similar transactions. The Warrants will be exercisable on a “cashless” basis in certain circumstances, including in the event a registration statement is not in effect at time of exercise. The warrant agreements contain a clause specifying that in the event there is no effective registration in effect for the underlying warrant shares to be issued at time of exercise, in no circumstance will the Company be required to net cash settle the warrants. Based on the Company’s analysis of the terms and conditions of the warrants, the Company has concluded that they meet the conditions outlined in applicable accounting guidance to be classified as equity instruments. As a result, the Company has accounted for the exercise price paid by investors for purchase of the pre-funded warrants as additional paid in capital on the accompanying Consolidated Balance Sheet. Liability classified warrants The 2017 and 2018 warrants have alternative settlement provisions that, at the option of the holder, provide for physical settlement or if, at the time of settlement there is no effective registration statement, a cashless exercise as defined in the warrant agreement. Based on analysis of the underlying warrant agreement and applicable accounting guidance, the Company concluded that these registered warrants require the issuance of registered securities upon exercise and do not sufficiently preclude an implied right to net cash settlement. Accordingly, these warrants were classified in the accompanying Consolidated Balance Sheet as a current liability upon issuance and will be revalued at each subsequent balance sheet date. The fair value of the liability for common stock purchase warrants is estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date, the contractual term of the warrant, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common stock. Based on the Black Sholes method the fair value of the Company’s warrants are as follows (in thousands): December 31, December 31, 2020 2019 2018 January and February Issuance Fair Value $ 3,577 $ 22 2017 May issuance Fair Value 1,045 1 $ 4,622 $ 23 Twelve Months Ended December 31, 2020 2019 Change in Fair Value of common stock warrant liability (1) (4,599) 1,474 (1) The combined changes in fair value is reflected as income from change in the fair market value of common stock warrant liability. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 13 – Shareholders’ Equity Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”) The Company has designated 10,000 shares of the Company’s preferred stock as Preferred Stock – Series B at a stated value of $1,000 per share. The Preferred Stock – Series B was initially convertible into common stock at a conversion price of $0.75 per share, subject to adjustment if the Company conducts an equity offering priced below that amoun t. Pursuant to this provision, the conversion price was reduced to $0.3022 per share in December 2019. At the current conversion price, the Series B. Preferred Stock is convertible into 18,726,009 share of Company common stock. The holders of the Preferred Stock – Series B are not entitled to receive dividends unless the Company’s Board of Directors declare a dividend for holders of the Company’s common stock and then the dividend shall be equal to the amount that such holder would have been entitled to receive if the holder converted its Preferred Stock – Series B into shares of the Company’s common stock. In the event of a liquidation, dissolution, or winding up of the Company, the Preferred Stock – Series B is entitled to receive liquidation preference before the Common Stock. The Company may at its option redeem the Preferred Stock – Series B by providing the required notice to the holders of the Preferred Stock – Series B and paying an amount equal to $1,000 multiplied by the number of shares for all of such holder’s shares of outstanding Preferred Stock – Series B to be redeemed. As of December 31, 2020 and 2019 , there were 5,659 shares of Preferred Stock – Series B issued and outstanding. Common Stock Common shares issued due to options and warrant exercises (dollar amounts in thousands): Twelve Months Ended December 31, 2020 2019 Shares issued due to Options exercised - 12,500 Proceeds $ - $ 9 Shares issued due to Warrants exercised (1) 5,364,997 - Proceeds $ 40 $ - (1) A total of warrants to purchase 6,240 common share were exercised, and 875 common shares were surrendered to the Company pursuant to cashless exercise provisions. Equity Issuances On April 9, 2019, the Company closed a registered direct offering of 4.0 million shares of common stock at a purchase price per share of $0.50 , for gross proceeds of approximately $2.0 million before deducting placement agent fees and other offering expenses. The Company also issued unregistered warrants to the investor to purchase up to 3.0 million shares of common stock at an exercise price of $0.78 per share. The warrants are exercisable nine months following issuance and will expire five and one-half years from the issuance date. On April 11, 2019, the Company closed an additional $2.0 million registered direct offering consisting of immediately exercisable pre-funded warrants to purchase up to 4.0 million shares of our common stock at a purchase price of $0.49 per warrant and an exercise price of $0.01 per share. In a concurrent private placement, the Company also issued to the investor in the registered direct offering unregistered warrants to purchase up to 3.0 million shares of the Company’s common stock at an exercise price of $0.78 per share. The unregistered warrants are exercisable six months following issuance and will expire five and one-half years from the issuance date. On November 22, 2019, the Company entered into an ATM offering agreement with H.C. Wainwright & Co., LLC, (“Wainwright”) to sell up to 5.0 million shares of our common stock having an aggregate offering price of up to $1.7 million from time to time through Wainwright acting as our sales agent. In 2019 , the Company raised $0.2 million, net of offering expenses. On June 10, 2020, t he Company filed a prospectus supplement to update and amend the aggregate amount of shares it may sell pursuant to the At Market Offering Agreement, dated November 22, 2019, as amen ded from time to time, between t he Company and H.C. Wainwright & Co., LLC. During the year ended December 31 , 2020, the Company raised $9.8 million , net of offering expenses, through the sale of shares under the ATM facility which represented the remaining amoun t available under the facility. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock Compensation [Abstract] | |
Stock Compensation | Note 14 – Stock Compensation Incentive compensation plans The 2019 Non Employee Director Stock Option and Incentive Plan (the “2019 Director Plan”) was adopted and approved by the shareholders on December 5, 2019 was designed to enhance the flexibility to grant equity awards to Directors and to ensure grant of equity awards to eligible recipients. The 2019 Plan has an aggregate of 2.0 million shares and permits an award of stock options (both incentive and non-qualified options), stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, dividend equivalent rights and cash-based awards. A minimum vesting period of one year is required for all equity awards. The 2019 Employee and Consultant Stock Option and Incentive Plan (the “2019 Employee and Consultant Plan”) was adopted and approved by the shareholders on December 5, 2019 was designed to enhance the flexibility to grant equity awards to officers, employees and consultants and to ensure grant of equity awards to eligible recipients. The 2019 Plan has an aggregate of 5.0 million shares and permits an award of stock options (both incentive and non-qualified options), stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, dividend equivalent rights and cash-based awards. A minimum vesting period of one year is required for all equity awards. Option activity for the year ended December 31, 2020 is summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2019 5,404,985 $ 2.40 Options granted 150,000 0.83 Options exercised — — Options forfeited — — Options cancelled or expired (757,151) 3.39 Outstanding at December 31, 2020 4,797,834 $ 2.17 2.72 $ — Vested or expected to vest at December 31, 2020 (1) 4,797,133 $ 2.36 2.74 $ — Exercisable at December 31, 2020 4,797,133 $ 2.36 2.74 $ — (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. At December 31, 2020 , there were 5 million shares available for grant under the 2019 Employee and Consultant Plan and 1.8 million shares available under the 2019 Non - Employee Director Incentive Plans. There are no shares available for grant under older plans. The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock on December 31, 2020 for the options that were in-the-money. As of December 31, 2020, there were no options that were in-the-money. The Company’s closing stock price was $1.65 as of December 31, 2020 . The Company issues new shares of common stock upon exercise of stock options. The intrinsic value of options exercised was $0.0 thousand for the year ended December 31, 2020 . Stock- based compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair value of stock options is estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. The following table summarizes the allocation of non-cash stock-based compensation to the Company’s expense categories for the years ended December 31, 2020 and 2019 (in thousands): Twelve Months Ended December 31, 2020 2019 Cost of revenues $ 16 $ 25 Research and development 42 85 Selling, general and administrative 100 441 Total stock compensation expense $ 158 $ 551 At December 31, 2020 , total unrecognized compensation costs related to stock options was approximately $ 17.5 thousand , net of estimated forfeitures. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 0.9 years. The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: Twelve Months Ended December 31, 2020 2019 Dividend yield 0 % 0 % Risk free interest rates 0.3 % 1.77 to 2.48 % Expected volatility 69.6 % 41.7 to 49.2 % Expected term (in years) 5.5 3.5 to 4.0 The weighted average fair value per share for options granted in 2020 and 2019 was $0.48 and $0.65 , respectively. There were no dividends declared or paid in 2020 or 2019 . The Company does not expect to pay dividends in the near future; therefore, it used an expected dividend yield of 0% . The risk-free interest rate used in the Black-Scholes option pricing model is based on the implied yield at the time of grant available on U.S. Treasury securities with an equivalent term. Expected volatility is based on the weighted average historical volatility of the Company’s common stock for the equivalent term. The expected term of options represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience and vesting schedules of similar awards. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies Equipment Purchase Commitments The Company has committed to equipment purchases of approximately $ 196.0 thousand at December 31, 2020 . In addition, through December 31, 2020 the Company has committed to equipment to be purchased under government awards of $3.5 million. Employee benefit plans The Company’s U.S. employees participate in a defined contribution plan. Under the provisions of the plan, an employee is fully vested with respect to Company contributions after five years of service. The Company matches employee contributions of 50% up to a maximum of 3% of qualified compensation. The Company’s contributions were $0.1 million for the year ended December 31, 2020 and December 31, 2019 . Change in Control agreements The Company entered into change in control agreements with certain of its executive officers, non-executive officers and managers. The agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause. Litigation From time to time, the Company may become subject to various legal proceedings that are incidental to the ordinary conduct of our business. In March 201 9, the Company received a demand letter seeking payment of $0.9 million of outstanding invoices relating to purchased inventory from Suga Electronics Limited, or Suga, a contract manufacturer located in China, which manufactured product sold by our consumer night vision business. The Company has responded to the demand letter, and requested that Suga provide substantiation of purchased inventory. On August 1, 2019 , the Company was notified by Suga that they intend to pursue arbitratio n. During September and October 201 9, the Company held preliminary discussions with Suga to attempt to reach a settlement, however in November 201 9 a formal request for arbitration was received, which Suga filed with the International Chamber of Commerce or ICC. The Company retained local counsel in Hong Kong to represent it before the ICC and in December 201 9 filed an answer to Suga’s request for arbitration including a counterclaim seeking repayment of amounts previously paid to Suga. An arbitrator has been appointed and arbitral proceedings for the consideration of the claims and counterclaims are ex pected to run through the second quarter of 2021. The parties are permitted to settle at any point during the arbitration proceedings. As disclosed in the financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018, the Company made a decision to exit the consumer night vision business and accrued approximately $1.0 million related to invoices received for inventory purchased by Suga in anticipation of future production. While the Company believe s that it has adequately accrued for the losses and are in discussions to resolve related claims by the contract manufacturers, there is the risk that additional losses or litigation related expenses may be incurred above the amounts accrued for as of December 31, 2020, if the Company fail s to resolve these claims in a timely and/or favorable manner . |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. The Company manages its operations on a consolidated, integrated basis in order to optimize its equipment and facilities and to effectively service its global customer base, and concludes that it operates in a single business segment. |
Reclassifications | Reclassification Certain balances on the consolidated balance sheet for the year ended December 31, 2019, have been reclassified, with no effect on net loss (or loss per common share) or shareholders’ equity, to be consistent with the classifications adopted for the year ended December 31, 2020. |
Use of Estimates | Use of Estimates In accordance with accounting principles generally accepted in the United States of America (“GAAP”), management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its esti mates and judgments related to , allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies , among others . Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Revenue and Cost Recognition | Revenue and Cost Recognition All of the Company’s revenues are earned from contracts with customers and are classified as either Product or Contract revenues. Contracts include written agreements and purchase orders, as well as arrangements that are implied by customary practices or law. Product revenue is generated primarily from contracts to produce, ship and deliver OLED microdisplays. The Company’s performance obligations are satisfied, control of our products is transferred, and revenue is recognized at a single point in time when control transfers to our customer for product shipped. Our customary terms are FOB our factory and control is deemed to transfer upon shipment. The Company has elected to treat shipping and other transportation costs charged to customers as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. As customers are invoiced at the time control transfers and the right to consideration is unconditional at that time, the Company does not maintain contract asset balances for product revenue. Additionally, the Company does not maintain contract liability balances for product revenues, as performance obligations are satisfied prior to customer payment for product. The Company offers a one-year product warranty, for replacement of product only, and does not allow returns. The Company generally offers industry standard payment terms that typically require payment from our customers from 30 to 60 days after title transfers. The Company also rec ognizes revenues under the over time method from certain research and development (“R&D”) activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Progress and revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on an input method of accounting as costs are incurred. Under the input method, revenue is recognized based on efforts expended to date (e.g., the costs of resources consumed or labor hours worked, or machine hours used) relative to total efforts intended to be expended. Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. Any changes in estimate related to contract accounting are accounted for prospectively over the remaining life of the contract. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in deferred revenues as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported as unbilled receivables. Unbilled revenues are expected to be billed and collected within one year. |
Costs to Obtain and Fulfill a Contract | Costs to Obtain and Fulfill a Contract The incidental costs related to obtaining product sales contracts are non-recoverable from customer and, accordingly, are expenses as incurred. The Company capitalizes costs incurred to fulfil its R&D contracts that i) relate directly to a contract or anticipated contract ii) are expected to satisfy the Company’s performance obligation under the contract and iii) are expected to be recovered through revenue generated under the contract. Contact fulfillment costs are expense to cost of revenue as the related performance obligations are satisfied. |
Government Funding | Government Funding The Company accounts for awards received from the U.S. g overnment for procurement of capital equipment after analysis of the terms of the underlying award contract, and in accordance with contract and equipment purchase milestones and accounting principles for grant accounting. For awards in which the Company will hold title to the underlying equipment, the Company initially records amounts invoiced to the U.S. g overnment for equipment progress payments on the accompanying Consolida ted Balance Sheets as deferred i ncome – government awards – long term and accounts r eceivable - due from government awards. The Company records said progress payments made to capital equipment vendors in Property, plant and equipment. Amounts recorded in deferred income – government a wards – long te rm will be recognized as Other i ncome on the accompanying Consolidated Statement of Operations on a systematic basis as depreciation and other expenses are incurred over the useful life of the capital equipment. See Note 4 of the Notes of the Consolidated Financial Statements for additional details of our government funding. |
Product Warranty | Product Warranty The Company generally offers a one-year product replacement warranty. The standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability, included in other current liabilities, during the years ended December 31, 2020 and 2019 (in thousands ): Twelve Months Ended December 31, 2020 2019 Beginning balance $ 300 $ 423 Warranty accruals and adjustments 333 58 Warranty claims (18) (181) Ending balance $ 615 $ 300 |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. |
Restricted Cash | Restricted Cash The Company accounts for cash received pursuant to U.S. g overnment funding, that is legally restricted for procurement of capital equipment, as Restricted Cash on the accompanying Consolidated Balance Sheets. Restricted Cash amou nts are received from the U.S. g overnment in advance of progress payments required for various program related capital equipment purchases and are disbursed by the Company to related equipment vendors. |
Accounts Receivable | Accounts Receivable The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30 - 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. |
Contract Assets and Liabilities | Contract Assets and Liabilities Unbilled Accounts Receivables (Contract Assets) - Pursuant to the over time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled accounts receivable is recorded to reflect revenue t hat is recognized when the cost based input method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Consolidated Balance Sheet. Customer Advances and Deposits (Contract Liabilities) - The Company recognizes a contract liability when it has billed and received consideration from the customer pursuant to the terms of a contract but has not yet recognized the related re venue. These billings in excess of revenue are classified as deferred revenue on the Consolidated Statements of Operations. |
Inventories | Inventories Inventories are stated on a standard cost basis adjusted to approximate the lower of cost (as determined by the first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with the Company’s suppliers, and the estimated utility of the inventory. If the Company review indicates a reduction in utility below carrying value, the inventory is reduced to a new cost basis. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation on equipment is calculated using the straight-line method of depreciation over the estimated useful life ranging from three to 10 years. Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. |
Intangible Assets - Patents | Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. Total intangible amortization expense was approximately $ 9 and $32 thousand for the years ended December 31, 2020 and 2019 , respectively. |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842: Leases, which we adopted on January 1, 2019. As a lessee, the Company record s a right-of-use asset and a lease liability on the Consolidated Balance Sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provi de an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, and use the implicit rate when readi ly determinable. The Company estimates its incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. Some of our leases include the option to extend or terminate the lease. The Company includes these op tions in the recognition of its right-of-use assets and lease liabilities when it is reasonably cer tain that the Company will exercise the option. Lease expense is generally recognized on a straight-line basis over the lease term. The Company enters into lease agreements for the use of office space, manufacturing facilities, and phone equipment, under both operating and finance leases. Operating leases are included in Operating lease right-of-use assets, Operating lease liability – current and, Operating lease liability – long term in our Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment, net, Finance lease liability – current and Finance lease liability – long term in our Consolidated Balance Sheet. |
Advertising | Advertising Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. There was no advertising expense for the years ended December 31, 2020 and 2019 . |
Shipping and Handling Fees | Shipping and Handling Fees The Company includes costs related to shipping and handling in cost of goods sold. |
Income Taxes | Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. The Company recognizes the effect of income tax positions which are more-likely-than-not of being sustained. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense . For additional details regarding our accounting for income taxes, see Note 11 in the accompanying consolidated financial statements. |
Net Loss per Common Share | Net Loss per Common Share Basic loss per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, and convertible preferred stock. Diluted loss per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. In accordance with Accounting Standards Codification (“ASC”) 260, entities that have issued securities other than common stock that participate in dividends with the common stock (“participating securities”) are required to apply the two-class method to compute basic EPS. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security as if all such earnings had been distributed during the period. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. Although the Company paid a one-time special dividend in 2012, the Company does not expect to pay dividends on its common or preferred stock in the near future. In accordance with the Preferred Stock – Series B agreements, the conversion price was adjusted to $0.3033 per share in December 201 9, and the resultant, if converted common shares are reflected in the table of anti-dilutive common stock equivalents below. For the years ended December 31, 2020 and 2019 , the Company reported a net loss and as a result, basic and diluted loss per common share are the same. Therefore, in calculating net loss per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income per common share because their effect was anti-dilutive. The following is a table of the potentially dilutive common stock equivalents for the years ended December 31, 2020 and 2019 that were not included in diluted EPS as their effect would be anti-dilutive: Twelve Months Ended December 31, 2020 2019 Options 4,797,834 5,404,985 Warrants 13,055,773 19,295,773 Convertible preferred stock 18,726,009 18,726,009 Total potentially dilutive common stock equivalents 36,579,616 43,426,767 The above table reflects a revision of the potentially dilutive common stock equivalents that were not included in diluted EPS, associated with the Company’s convertible preferred stock, for the year ended December 31, 2019 , compared to what was previously reported. The C ompany increased such potentially dilutive common stock equivalents from 7,545,333 to 18,726,009 as a result of previously excluding certain common stock equivalents that would be issued as a result of the Company conducting an equity offering priced below the convertible preferred stock’s conversion price. This correction had no impact on any financial statement amounts or EPS. |
Comprehensive Income (Loss) | Comprehensive Income (L oss) Comprehensive income (loss) refers to net income (loss) and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net income (loss). The Company's operations did not give rise to any material items includable in comprehensive income (loss), which were not already in net income (loss) for the years ended December 31, 2020 and 2019 . Accordingly, the Company's comprehensive income (loss) is the same as its net income (loss) for the periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash, cash equivalents, accounts receivable, short-term investments and accounts payable are stated at cost, which approximates fair value, due to the short-term nature of these instruments. The asset based lending facility (the “ABL Facility”) is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. The payroll protection plan, or PPP loan is presented on the balance sheet, at cost which equals fair market value due to the short term nature of the loan. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into three-level fair value hierarchy in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the balance sheets at fair value are categorized based on a hierarchy of inputs as follows: Level 1 – Unadjusted quoted prices in active markets of identical assets or liabilities. Level 2 – Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs for the asset or liability. The common stock warrant liability discussed in Note 12 is currently the only financial assets or liability recorded at fair value on a recurring basis, and is considered a Level 3 liability. The fair value of the common stock warrant liability is included in current liabilities on the accompanying financial statements as of December 31, 2020 , as the warrants are currently exercisable . The following table shows the reconciliation of the Level 3 warrant liability measured and recorded at fair value on a recurring basis, using significant unobservable inputs (in thousands ): Estimated Fair Value Balance as of January 1, 2020 $ 23 Fair value of warrants issuance during period - Change in fair value of warrant liability, net 4,599 Balance as of December 31, 2020 $ 4,622 The fair value of the liability for common stock purchase warrants at December 31, 2020 was estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date. Inputs to the model at December 31, 2020 included remaining contractual terms of the warrants ranging from 1.4 to 2.1 years, risk-free interest rates ranging from 0.16% to 2.87% , with no expected dividends, and expected volatility of the price of the underlying common stock ranging from 40.28% to 109.27% . |
Stock-Based Compensation | Stock-based Compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates all financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features qualifying as embedded derivatives. For derivative financial instruments accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statement of operations. The Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. |
Concentration of Credit Risk and Concentrations | Concentration of Credit Risk The majority of the Company’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are made generally on open account while sales to occasional customers are typically made on a prepaid basis. The Company performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company invests surplus cash in a government money ma rket fund that consists of U.S. g overnment obligations and repurchase agr eements collateralized by U.S. government o bligations, which are not insured. To date, the Company has not experienced any loss associated with this risk. Concentrations The Company purchases principally all of its silicon wafers, which are a key ingredient in its OLED production process, from two suppliers located in Taiwan and Korea. For the year ended December 31, 2020 , three customers accounted for 16.9% , 12.8% and 10.9% of net revenues. For year ended December 31, 2019, there were zero customers who accounted for over 10% of net revenues. As of December 31, 2020 , the Company had accounts receivable balances from those three customers who had balances of 22.0% , 17.0% and 9.5% . |
Liquidity and Going Concern | Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the year ended December 31, 2020 , the Company incurred a net loss $11.4 million and used cash in operating activities of $4.9 million . As of December 31, 2020 , the Company had $ 8.3 million of cash , $1.9 million of outstanding indebtedness and borrowing availability of $2.1 million under its ABL Facility. In addition, the Company has $1.9 million outstanding under a PPP l oan, which may be forgiven if the loan is used for eligible expenses and meets PPP criteria for forgiveness. The pandemic has significantly increased economic and demand uncertainty. It is possible that the current outbreak and continued spread of COVID-19, including any vaccine resistant strains, or any resurgence will cause the economic slowdown to continue, and it is possible that it could cause a global recession. Although vaccines are becoming more widely available, t here is a significant degree of uncertainty and lack of visibility as to the extent and duration of the pandemic and related slowdowns or economic trends. If either were prolonged, demand for our products will be significantly harmed. Although many jurisdictions are now open with social distancing measures implemented to curt ail the spread of COVID-19, we cannot predict the length of time that it will take for any meaningful economic recovery to take place. We also cannot predict whether vaccine resistant strains will lead to additional surges in new cases of COVID-19, or the severity of such surges if/when they occur, such that governmental authorities decide to reimpose quarantines, lockdowns or travel restrictions, which could further materially and adversely affect our results and financial condition. Due to continuing losses, the COVID-19 pandemic, uncertainty regarding the Company’s need or ability to borrow under its ABL Facility, and the expiration of the Company’s At The Market (“ATM”) facility in July 202 0 when the remaining amount available under the facility was used, the Company may not be able to meet its financial obligations as they become due without obtaining additional financing or sources of capital at acceptable terms to the Company . Therefore, in accordance with applicable accounting guidance, and based on the Company’s current financial condition and availability of funds, there is substantial doubt about the Company’s ability to continue as a going concern through twelve months from the date these financial statements were issued. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives . The Company’s plans with regard to these matters include the following actions: 1) focus production and engineering resources on improving manufacturing yields and increasing production volumes, 2) continuing a Work Status Reduction program that began in October 201 9 wherein senior management work status was reduced by approximately 20% , 3) reduce headcount and not replace departed employees, subject to PPP loan restrictions, 4) reduce discretionary and other expenses 5) seek to enter new markets , and 6) considering additional financing and/or strategic alternatives. The Company is reassessing its business plans and forecasts over the next two years. Based on its known cash needs as of March 2021 , and the anticipated availability of its ABL facility, the Company has developed plans to extend its liquidity to support its working capital requirements through the first quarter of 2022. However, there can be no assurance the Company’s plans will be achieved, or that the Company will be able to continue to borrow under its ABL Facility, mitigate the impacts of COVID-19, secure additional financing, and/or pursue strategic alternatives on terms acceptable to the Company, or at all. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 201 8, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) a guidance that adds, amends, and removes certain disclosure requirements related to fair value measurements. Among other changes, this standard requires certain additional disclosure surrounding Level 3 assets, including changes in unrealized gains or losses in other comprehensive income and certain inputs in those measurements. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted the guidance on January 1, 2020, on a prospective basis and such adoption did not have a material impact on the Company’s financial statements. Recently Issued Accounting Pronouncements In June 201 6, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's accounts receivable, and it requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Based on the composition of the Company's receivables, current market conditions and historical credit loss activity, t he Company is currently evaluating the impact of this ASU on the consolidated financial statements. In December 201 9, the FASB issued ASU 2019-12, Income Taxes (Topic 740) as part of its initiative to reduce complexity in accounting standards. This standard simplify the accounting for income taxes. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. This standard may be adopted early, while certain additional disclosure requirements in this standard can be adopted on its effective date. In addition, certain changes in the standard require retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In August 202 0, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. This guidance changes how entities account for convertible instruments and contracts in an entity's own equity and simplifies the accounting for convertible instruments by removing certain separation models for convertible instruments. This guidance also modifies the guidance on diluted earnings per share calculations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Summary of Activity Related to Warranty Liability Included in Other Current Liabilities | Twelve Months Ended December 31, 2020 2019 Beginning balance $ 300 $ 423 Warranty accruals and adjustments 333 58 Warranty claims (18) (181) Ending balance $ 615 $ 300 |
Schedule of Potentially Dilutive Common Stock Equivalents | Twelve Months Ended December 31, 2020 2019 Options 4,797,834 5,404,985 Warrants 13,055,773 19,295,773 Convertible preferred stock 18,726,009 18,726,009 Total potentially dilutive common stock equivalents 36,579,616 43,426,767 |
Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis | Estimated Fair Value Balance as of January 1, 2020 $ 23 Fair value of warrants issuance during period - Change in fair value of warrant liability, net 4,599 Balance as of December 31, 2020 $ 4,622 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue | Twelve Months Ended December 31, 2020 2019 North and South America $ 16,434 $ 14,566 Europe, Middle East, and Africa 9,834 11,112 Asia Pacific 3,156 1,048 Total $ 29,424 $ 26,726 Twelve Months Ended December 31, 2020 2019 Military $ 21,373 $ 19,033 Commercial, including industrial and medical 1,607 3,224 Consumer 3,383 1,187 Multiple 3,061 3,282 Total $ 29,424 $ 26,726 |
Schedule of Contract Assets and Liabilities | 21 December 31, December 31, 2020 2019 Unbilled Receivables (contract assets) $ 253 $ 155 Deferred Revenue (contract liabilities) $ (425) $ (277) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | December 31, December 31, 2020 2019 Accounts receivable $ 5,453 $ 4,105 Less allowance for doubtful accounts (139) (139) Accounts receivable, net $ 5,314 $ 3,966 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, Net [Abstract] | |
Schedule of Components of Inventories | December 31, December 31, 2020 2019 Raw materials $ 3,995 $ 2,788 Work in process 1,263 1,561 Finished goods 3,918 5,248 Total inventories 9,176 9,597 Less inventory reserve (797) (765) Total inventories, net $ 8,379 $ 8,832 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | December 31, 2020 2019 Vendor prepayments $ 716 $ 657 Other prepaid expenses 227 473 Total prepaid expenses and other current assets $ 943 $ 1,130 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment Improvements | December 31, 2020 2019 Computer hardware and software $ 921 $ 893 Lab and factory equipment 20,554 17,482 Furniture, fixtures and office equipment 59 59 Finance lease - equipment 116 116 Finance lease - manufacturing facility 12,706 - Construction in progress 1,734 2,668 Leasehold improvements 128 60 Total property, plant and equipment 36,218 21,278 Less: accumulated depreciation and amortization (15,086) (13,178) Property, plant and equipment, net $ 21,132 $ 8,100 |
Debt _ Line of Credit (Tables)
Debt / Line of Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt / Line of Credit [Abstract] | |
Schedule of Line of Credit | December 31, December 31, (in thousands) 2020 2019 Revolving credit facility $ 1,875 $ 2,891 Less: unamortized debt issuance costs - - Revolving credit facility, net $ 1,875 $ 2,891 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | Twelve Months Ended December 31, 2020 2019 Finance Lease Cost: Amortization of right-of-use assets $ 68 $ 11 Interest on lease liabilities 70 3 Operating lease cost 965 986 Short-term lease cost - 58 Total Lease Cost $ 1,103 $ 1,058 |
Schedule of Other Information | Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,068 $ 1,012 Financing cash flows from finance leases $ 103 $ 13 Right-of-use assets obtained in exchange for new finance lease liabilities $ 12,706 $ 50 Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 110 Finance lease right-of-use assets 12,677 40 Operating lease right-of-use assets 50 3,729 Finance lease liability, current 1,027 16 Finance lease liability, non-current 11,783 24 Operating lease liabilities, current 51 775 Operating lease liabilities, non-current - 3,067 Weighted average remaining lease terms - finance leases 20.67 years 2.33 years Weighted average remaining lease terms - operating leases 0.84 years 4.42 years Weighted average discount rate - finance leases 6.43% 10.91% Weighted average discount rate - operating leases 7.75% 8.48% |
Future Annual Minimum Lease Payments and Finance Lease Commitments | Operating Leases Finance Leases 2021 $ 52 $ 1,029 2022 - 1,019 2023 - 1,011 2024 - 1,011 2025 - 1,011 Thereafter - 18,261 Total undiscounted future minimum lease payments 52 23,342 Less imputed interest (1) (10,532) Lease liability (1) $ 51 $ 12,810 (1) Total future lease payments exclude approximately $4.9 million of lease payments related to the Expansion Space portion of the NY Lease that was signed but has not yet commenced as of December 31, 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Schedule of Net Loss Before Income Taxes | For the Years Ended December 31, 2020 2019 Domestic, current $ (11,448) $ (4,298) Total $ (11,448) $ (4,298) |
Schedule of Deferred Taxes | For the Years Ended December 31, 2020 2019 Deferred tax assets: Federal and state net operating loss carryforwards $ 28,153 $ 30,428 Research and development tax credit carryforwards 2,450 2,479 Stock based compensation 1,561 1,632 Other provision and expenses not currently deductible 2,317 1,327 Total deferred tax assets 34,481 35,866 Deferred tax liabilities: Depreciation and amortization (521) (693) Prepaid expenses (68) (195) Total deferred liabilities (589) (888) Less: valuation allowance (33,892) (34,978) Net deferred tax asset $ — $ — |
Schedule of Federal Net Operating Losses and Tax Credit Carryforwards | Net Research and Operating Development Losses Tax Credits 2020 - 2021 $ 28,171 $ 323 2022 - 2025 42,814 319 2026 - 2037 45,866 1,808 No Expiration 15,012 - $ 131,863 $ 2,450 |
Schedule of Reconciliation of Effective Tax Rate | For the Years Ended December 31, 2020 2019 U.S. Federal income tax benefit at federal statutory rate 21 % 21 % Change in valuation allowance 9 (6) Permanent differences (8) 7 NOL Expiration - 1998 (21) (26) Other, net (1) 4 Effective tax rate - % - % |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Warrants [Abstract] | |
Summary of Warrants Issued and Warrants Outstanding | Issued Outstanding Exercise Price Expire 2015 Warrant Issuance 383,500 383,500 2.05 Jun 2021 2016 Warrant Issuance 2,947,949 2,947,949 2.60 Feb 2022 2017 Warrant Issuance (1) 100,000 100,000 2.25 Mar 2022 2017 Warrant Issuance (2) 1,650,000 1,650,000 2.45 Nov 2022 2018 Warrant Issuance (2) 4,004,324 3,974,324 1.55 Jul 2023 2019 Warrant Issuance (3) 6,000,000 4,000,000 0.78 Oct 2024 13,055,773 (1) Issued in conjunction with an unsecured line of credit. (2) Warrants are subject to liability accounting . (3) Private Placement unregistered warrants exercisable six months following issuance. |
Fair Value of Warrants | December 31, December 31, 2020 2019 2018 January and February Issuance Fair Value $ 3,577 $ 22 2017 May issuance Fair Value 1,045 1 $ 4,622 $ 23 Twelve Months Ended December 31, 2020 2019 Change in Fair Value of common stock warrant liability (1) (4,599) 1,474 (1) The combined changes in fair value is reflected as income from change in the fair market value of common stock warrant liability. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' Equity [Abstract] | |
Common Share Activity | Twelve Months Ended December 31, 2020 2019 Shares issued due to Options exercised - 12,500 Proceeds $ - $ 9 Shares issued due to Warrants exercised (1) 5,364,997 - Proceeds $ 40 $ - (1) A total of warrants to purchase 6,240 common share were exercised, and 875 common shares were surrendered to the Company pursuant to cashless exercise provisions. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock Compensation [Abstract] | |
Schedule of Option Activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2019 5,404,985 $ 2.40 Options granted 150,000 0.83 Options exercised — — Options forfeited — — Options cancelled or expired (757,151) 3.39 Outstanding at December 31, 2020 4,797,834 $ 2.17 2.72 $ — Vested or expected to vest at December 31, 2020 (1) 4,797,133 $ 2.36 2.74 $ — Exercisable at December 31, 2020 4,797,133 $ 2.36 2.74 $ — (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Schedule of Allocation of Non-Cash Stock-Based Compensation | Twelve Months Ended December 31, 2020 2019 Cost of revenues $ 16 $ 25 Research and development 42 85 Selling, general and administrative 100 441 Total stock compensation expense $ 158 $ 551 |
Schedule of Key Assumptions of Fair Value of Stock Options Granted | Twelve Months Ended December 31, 2020 2019 Dividend yield 0 % 0 % Risk free interest rates 0.3 % 1.77 to 2.48 % Expected volatility 69.6 % 41.7 to 49.2 % Expected term (in years) 5.5 3.5 to 4.0 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)itemcustomershares | Dec. 31, 2019USD ($)customer$ / sharesshares | Jun. 08, 2020USD ($) | |
Accounting Policies [Line Items] | |||
Standard product warranty period | 1 year | ||
Total intangible amortization expense | $ 9,000 | $ 32,000 | |
Advertising expense | $ 0 | $ 0 | |
Total potentially dilutive common stock equivalents | shares | 36,579,616 | 43,426,767 | |
Net loss | $ 11,448,000 | $ 4,298,000 | |
Net cash used in operating activities | 4,897,000 | 5,150,000 | |
Cash and cash equivalents | 8,315,000 | $ 3,515,000 | |
Outstanding debt | 1,900,000 | ||
PPP loan | $ 1,900,000 | $ 1,900,000 | |
Work status reduction program, percentage decrease in senior management compensation | 20.00% | ||
Series B Convertible Preferred Stock [Member] | |||
Accounting Policies [Line Items] | |||
Conversion price per share | $ / shares | $ 0.3033 | ||
Warrants [Member] | Measurement Input, Expected Dividend Rate [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 0 | ||
Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Accounts receivable, balance due | 30 days | ||
Minimum [Member] | Warrants [Member] | Measurement Input, Expected Term [Member] | |||
Accounting Policies [Line Items] | |||
Expected term | 1 year 4 months 24 days | ||
Minimum [Member] | Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 0.0016 | ||
Minimum [Member] | Warrants [Member] | Measurement Input, Price Volatility [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 0.4028 | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Accounts receivable, balance due | 90 days | ||
Maximum [Member] | Warrants [Member] | Measurement Input, Expected Term [Member] | |||
Accounting Policies [Line Items] | |||
Expected term | 2 years 1 month 6 days | ||
Maximum [Member] | Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 0.0287 | ||
Maximum [Member] | Warrants [Member] | Measurement Input, Price Volatility [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 1.0927 | ||
Equipment [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Equipment [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful life | 10 years | ||
Revolving Credit Facility [Member] | |||
Accounting Policies [Line Items] | |||
Outstanding debt | $ 1,875,000 | $ 2,891,000 | |
Remaining borrowing capacity | $ 2,100,000 | ||
Revenues [Member] | Customer Concentration Risk [Member] | |||
Accounting Policies [Line Items] | |||
Number of customers | customer | 3 | 0 | |
Revenues [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 16.90% | ||
Revenues [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 12.80% | ||
Revenues [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 10.90% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Accounting Policies [Line Items] | |||
Number of customers | customer | 3 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 22.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 17.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 9.50% | ||
Convertible Preferred Stock [Member] | |||
Accounting Policies [Line Items] | |||
Total potentially dilutive common stock equivalents | shares | 18,726,009 | 18,726,009 | |
Convertible Preferred Stock [Member] | Previously Reported [Member] | |||
Accounting Policies [Line Items] | |||
Total potentially dilutive common stock equivalents | shares | 7,545,333 |
Significant Accounting Polici_5
Significant Accounting Policies (Summary of Activity Related to Warranty Liability Included in Other Current Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | ||
Beginning balance | $ 300 | $ 423 |
Warranty accruals and adjustments | 333 | 58 |
Warranty claims | (18) | (181) |
Ending balance | $ 615 | $ 300 |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule of Potentially Dilutive Common Stock Equivalents) (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 36,579,616 | 43,426,767 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 4,797,834 | 5,404,985 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 13,055,773 | 19,295,773 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 18,726,009 | 18,726,009 |
Significant Accounting Polici_7
Significant Accounting Policies (Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | ||
Balance as of January 1, 2020 | $ 23 | |
Fair value of warrants issuance during period | ||
Change in fair value of warrant liability, net | 4,599 | $ (1,474) |
Balance as of December 31, 2020 | $ 4,622 | $ 23 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Recognition [Abstract] | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 5,314 | $ 3,966 |
Revenue recognized related to contract liabilities | 200 | 200 |
Aggregate amount of the transaction price allocated to remaining performance obligations | $ 2,500 | $ 1,400 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations Narrative) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 $ in Millions | Dec. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2.3 |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | $ 29,424 | $ 26,726 |
Military [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 21,373 | 19,033 |
Commercial, including Industrial and Medical [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 1,607 | 3,224 |
Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 3,383 | 1,187 |
Multiple [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 3,061 | 3,282 |
North and South America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 16,434 | 14,566 |
Europe, Middle East, and Africa [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 9,834 | 11,112 |
Asia Pacific [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | $ 3,156 | $ 1,048 |
Revenue Recognition (Schedule_2
Revenue Recognition (Schedule of Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue Recognition [Abstract] | ||
Unbilled Receivables (contract assets) | $ 253 | $ 155 |
Deferred Revenue (contract liabilities) | $ (425) | $ (277) |
Government Funding (Narrative)
Government Funding (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jul. 28, 2020 | Jun. 11, 2020 | |
Amount awarded | $ 33,600 | $ 5,500 | |
Government funding, term of contract | 33 months | ||
Deposits received, required by capital equipment vendors | $ 3,500 | ||
Restricted cash | 2,111 | ||
Amount invoiced | 4,400 | ||
Deferred income related to certain overhead expenses, not capitalized | $ 77 | ||
Maintain productive capacity of equipment purchased past completion of program, period | 5 years | ||
Government Funding [Member] | |||
Restricted cash | $ 1,100 |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 5,453 | $ 4,105 |
Less allowance for doubtful accounts | (139) | (139) |
Accounts receivable, net | $ 5,314 | $ 3,966 |
Inventories, Net (Schedule of C
Inventories, Net (Schedule of Components of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories, Net [Abstract] | ||
Raw materials | $ 3,995 | $ 2,788 |
Work in process | 1,263 | 1,561 |
Finished goods | 3,918 | 5,248 |
Total inventories | 9,176 | 9,597 |
Less inventory reserve | (797) | (765) |
Total inventories, net | $ 8,379 | $ 8,832 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Vendor prepayments | $ 716 | $ 657 |
Other prepaid expenses | 227 | 473 |
Total prepaid expenses and other current assets | $ 943 | $ 1,130 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 2,112 | $ 2,046 |
Amortization expense for assets under captial leases | $ 68 | 11 |
Finance lease, term of contract | 10 years | |
Number of options to renew lease agreement | item | 2 | |
Options to renew lease agreement, period of renewal | 5 years | |
Present value of lease payment that exceeded fair value of underlying asset, percentage | 90.00% | |
Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 2,100 | $ 1,900 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Schedule of Property, Plant and Equipment Improvements) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 36,218 | $ 21,278 |
Less: accumulated depreciation and amortization | (15,086) | (13,178) |
Property, plant and equipment, net | 21,132 | 8,100 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 921 | 893 |
Lab and Factory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 20,554 | 17,482 |
Furniture, Fixtures and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 59 | 59 |
Finance Lease - Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 116 | 116 |
Finance Lease - Manufacturing Facility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 12,706 | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,734 | 2,668 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 128 | $ 60 |
Debt _ Line of Credit (Narrativ
Debt / Line of Credit (Narrative) (Details) - USD ($) | Dec. 21, 2016 | Dec. 31, 2020 | Jun. 08, 2020 |
Line of Credit Facility [Line Items] | |||
Interest paid, capitalized or accrued | $ 57,000 | ||
PPP loan | 1,900,000 | $ 1,900,000 | |
Future annual minimum loan payments due, 2021 | 980,000 | ||
Future annual minimum loan payments due, 2022 | $ 980,000 | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity description | provides for up to a maximum amount of $5 million based on a borrowing base equivalent of 85% of eligible accounts receivable plus the lesser of $2 million or 50% of eligible inventory. | ||
Maximum borrowing capacity | $ 5,000,000 | ||
Borrowing base equivalent of eligible accounts receivable, percentage | 85.00% | ||
Monthly interest payment | $ 2,000 | ||
Monthly administrative fee | $ 1,000 | ||
Annual facility fee on maximum amount borrowable | 1.00% | ||
Effective interest rate of funds borrowed | 6.50% | ||
Renewal date | Dec. 31, 2020 | ||
Automatic renewal date | Dec. 31, 2021 | ||
Line of credit facility term | 3 years | ||
Automatic renewal term | 1 year | ||
Debt issuance costs | $ 200,000 | ||
Minimum tangible net worth required for compliance | 13,000,000 | ||
Minimum working capital required for compliance | $ 4,000,000 | ||
Remaining borrowing capacity | $ 2,100,000 | ||
Minimum [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Effective interest rate of funds borrowed | 6.50% | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing base equivalent of eligible inventory | $ 2,000,000 | ||
Borrowing base equivalent of eligible inventory, percentage | 50.00% | ||
Prime Rate [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 3.00% |
Debt _ Line of Credit (Schedule
Debt / Line of Credit (Schedule of Line of Credit) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Revolving credit facility, net | $ 1,900 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | 1,875 | $ 2,891 |
Less unamortized debt issuance costs | ||
Revolving credit facility, net | $ 1,875 | $ 2,891 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020ft²item | Dec. 31, 2019 | Dec. 31, 2020item | May 02, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Number of options to renew lease agreement | 2 | |||
Options to renew lease agreement, period of renewal | 5 years | |||
Finance lease, term of contract | 10 years | |||
Hopewell Junction, NY [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease expiration date | May 31, 2024 | |||
Hopewell Junction, NY [Member] | 12th Amendment [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Additional area of office and manufacturing facilities (in square feet) | ft² | 63,000 | |||
Number of options to renew lease agreement | 2 | |||
Options to renew lease agreement, period of renewal | 5 years | |||
Santa Clara, California [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease extension term | 2 years | |||
Lease extension expiration date | Oct. 31, 2021 | |||
Phone Equipment [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance lease, term of contract | 3 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance Lease Cost: | ||
Amortization of right-of-use assets | $ 68 | $ 11 |
Interest on lease liabilities | 70 | 3 |
Operating lease cost | 965 | 986 |
Short-term lease cost | 58 | |
Total Lease Cost | $ 1,103 | $ 1,058 |
Leases (Schedule of Other Infor
Leases (Schedule of Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 1,068 | $ 1,012 |
Financing cash flows from finance leases | 103 | 13 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 12,706 | 50 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 110 | |
Finance lease right-of-use assets | 12,677 | 40 |
Operating lease right - of - use assets | 50 | 3,729 |
Finance lease liability - current | 1,027 | 16 |
Finance lease liability, non-current | 11,783 | 24 |
Operating lease liabilities, current | $ 51 | 775 |
Operating lease liabilities, non-current | $ 3,067 | |
Weighted average remaining lease terms - finance leases | 20 years 8 months 1 day | 2 years 3 months 29 days |
Weighted average remaining lease terms - operating leases | 10 months 2 days | 4 years 5 months 1 day |
Weighted average discount rate - finance leases | 6.43% | 10.91% |
Weighted average discount rate - operating leases | 7.75% | 8.48% |
Leases (Future Annual Minimum L
Leases (Future Annual Minimum Lease Payments and Finance Lease Commitments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 52 |
2022 | |
2023 | |
2024 | |
2025 | |
Thereafter | |
Total undiscounted future minimum lease payments | 52 |
Less imputed interest | (1) |
Lease liability | 51 |
Finance Leases | |
2021 | 1,029 |
2022 | 1,019 |
2023 | 1,011 |
2024 | 1,011 |
2025 | 1,011 |
Thereafter | 18,261 |
Total undiscounted future minimum lease payments | 23,342 |
Less imputed interest | (10,532) |
Lease liability | 12,810 |
12th Amendment [Member] | Hopewell Junction, NY [Member] | |
Finance Leases | |
Lease liability | $ 4,900 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Line Items] | ||
Number of CARES Act provisions company is able to benefit from | item | 1 | |
Expected refund for AMT credit carryforward | $ 212,000 | |
Valuation allowance | 33,892,000 | $ 34,978,000 |
Net operating loss carryforwards | 131,863,000 | |
Research and development tax credit carryforwards | 2,450,000 | 2,479,000 |
Unrecognized tax benefits | 0 | 0 |
Unrecognized tax benefits, interest and penalties | 0 | $ 0 |
Expired [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 11,100,000 | |
Indefinite [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | $ 14,700,000 |
Income Taxes (Schedule of Net L
Income Taxes (Schedule of Net Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Domestic, current | $ (11,448) | $ (4,298) |
Loss before provision for income taxes | $ (11,448) | $ (4,298) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Abstract] | ||
Federal and state net operating loss carryforwards | $ 28,153 | $ 30,428 |
Research and development tax credit carryforwards | 2,450 | 2,479 |
Stock based compensation | 1,561 | 1,632 |
Other provision and expenses not currently deductible | 2,317 | 1,327 |
Total deferred tax assets | 34,481 | 35,866 |
Depreciation and amortization | (521) | (693) |
Prepaid expenses | (68) | (195) |
Total deferred liabilities | (589) | (888) |
Less: valuation allowance | (33,892) | (34,978) |
Net deferred tax asset |
Income Taxes (Schedule of Feder
Income Taxes (Schedule of Federal Net Operating Losses and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | $ 131,863 | |
Research and Development Tax Credits | 2,450 | $ 2,479 |
2020-2021 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | 28,171 | |
Research and Development Tax Credits | 323 | |
2022-2025 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | 42,814 | |
Research and Development Tax Credits | 319 | |
2026-2037 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | 45,866 | |
Research and Development Tax Credits | 1,808 | |
No Expiration [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | $ 15,012 | |
Minimum [Member] | 2020-2021 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration | Jan. 1, 2020 | |
Minimum [Member] | 2022-2025 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration | Jan. 1, 2022 | |
Minimum [Member] | 2026-2037 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration | Jan. 1, 2026 | |
Maximum [Member] | 2020-2021 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration | Dec. 31, 2021 | |
Maximum [Member] | 2022-2025 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration | Dec. 31, 2025 | |
Maximum [Member] | 2026-2037 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration | Dec. 31, 2037 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Effective Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
U.S. Federal income tax benefit at federal statutory rate | 21.00% | 21.00% |
Change in valuation allowance | 9.00% | (6.00%) |
Permanent differences | (8.00%) | 7.00% |
NOL Expiration - 1998 | (21.00%) | (26.00%) |
Other, net | (1.00%) | 4.00% |
Effective tax rate |
Warrants (Summary of Warrants I
Warrants (Summary of Warrants Issued and Warrants Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Outstanding | 13,055,773 |
2015 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 383,500 |
Outstanding | 383,500 |
Exercise Price | $ / shares | $ 2.05 |
Expire | 2021-06 |
2016 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 2,947,949 |
Outstanding | 2,947,949 |
Exercise Price | $ / shares | $ 2.60 |
Expire | 2022-02 |
2017 Warrant Issuance 1 [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 100,000 |
Outstanding | 100,000 |
Exercise Price | $ / shares | $ 2.25 |
Expire | 2022-03 |
2017 Warrant Issuance 2 [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 1,650,000 |
Outstanding | 1,650,000 |
Exercise Price | $ / shares | $ 2.45 |
Expire | 2022-11 |
2018 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 4,004,324 |
Outstanding | 3,974,324 |
Exercise Price | $ / shares | $ 1.55 |
Expire | 2023-07 |
2019 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 6,000,000 |
Outstanding | 4,000,000 |
Exercise Price | $ / shares | $ 0.78 |
Expire | 2024-10 |
Warrants (Fair Value of Warrant
Warrants (Fair Value of Warrants) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Warrant or Right [Line Items] | ||
Fair Value | $ 4,622 | $ 23 |
Change in Fair Value of common stock warrant liability | (4,599) | 1,474 |
2018 January and February Issuance [Member] | ||
Class of Warrant or Right [Line Items] | ||
Fair Value | 3,577 | 22 |
2017 May issuance [Member] | ||
Class of Warrant or Right [Line Items] | ||
Fair Value | $ 1,045 | $ 1 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 11, 2019 | Apr. 09, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 22, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Proceeds from offering | $ 9,783 | $ 3,476 | ||||
Registered Direct Offering [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares issued | 4,000,000 | |||||
Common stock, price per share | $ 0.49 | $ 0.50 | ||||
Number of shares of common stock called by warrants | 4,000,000 | |||||
Warrants exercise price per share | $ 0.01 | |||||
Proceeds from offering | $ 2,000 | $ 2,000 | ||||
ATM Offering [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares of common stock called by warrants | 5,000,000 | |||||
Warrants issued, value | $ 1,700 | |||||
Proceeds from offering | $ 200 | |||||
Unregistered [Member] | Registered Direct Offering [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares of common stock called by warrants | 3,000,000 | 3,000,000 | ||||
Warrants exercise price per share | $ 0.78 | $ 0.78 | ||||
Period after issuance in which warrants are exercisable | 6 months | 9 months | ||||
Warrant term | 5 years 6 months | 5 years 6 months | ||||
Series B Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares designated | 10,000 | 10,000 | ||||
Preferred stock, stated value | $ 1,000 | $ 1,000 | ||||
Preferred stock, conversion price per share | $ 0.3022 | $ 0.75 | ||||
Common stock issued upon conversion of preferred stock | 18,726,009 | |||||
Preferred stock, redemption price per share | $ 1,000 | |||||
Preferred stock, shares issued | 5,659 | 5,659 | ||||
Preferred stock, shares outstanding | 5,659 | 5,659 |
Shareholders' Equity (Common Sh
Shareholders' Equity (Common Share Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shareholders' Equity [Abstract] | ||
Shares issued due to Options exercised | 12,500 | |
Proceeds | $ 9 | |
Shares issued due to Warrants exercised | 5,364,997 | |
Proceeds | $ 40 | |
Warrants to purchase common shares, exercised, number of common shares | 6,240 | |
Number of common shares surrendered pursuant to cashless exercise provision | 875 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options in-the-money | 0 | |
Closing stock price | $ 1.65 | |
Unrecognized stock option compensation, net of forfeitures | $ 17,500 | |
Unrecognized compensation cost, weighted average period of recognition | 10 months 24 days | |
Weighted average fair value per share for options granted | $ 0.48 | $ 0.65 |
Dividend yield | 0.00% | 0.00% |
Intrinsic value of options exercised | $ 0 | |
Dividend declared and paid | $ 0 | $ 0 |
2019 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 2,000,000 | |
Shares available for issuance/grant | 1,800,000 | |
2019 Employee and Consultant Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 5,000,000 | |
Shares available for issuance/grant | 5,000,000 | |
Older Plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance/grant | 0 | |
Share-based Payment Arrangement, Tranche One [Member] | 2019 Director Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Share-based Payment Arrangement, Tranche One [Member] | 2019 Employee and Consultant Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year |
Stock Compensation (Schedule of
Stock Compensation (Schedule of Option Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Compensation [Abstract] | ||
Number of Shares, Outstanding at December 31, 2019 | 5,404,985 | |
Number of Shares, Options granted | 150,000 | |
Number of Shares, Options exercised | (12,500) | |
Number of Shares, Options cancelled or expired | (757,151) | |
Number of Shares, Outstanding at December 31, 2020 | 4,797,834 | 5,404,985 |
Number of Shares, Vested or expected to vest at December 31, 2020 | 4,797,133 | |
Number of Shares, Exercisable at December 31, 2020 | 4,797,133 | |
Weighted Average Exercise Price, Outstanding at December 31, 2019 | $ 2.40 | |
Weighted Average Exercise Price, Options granted | 0.83 | |
Weighted Average Exercise Price, Options cancelled or expired | 3.39 | |
Weighted Average Exercise Price, Outstanding at December 31, 2020 | 2.17 | $ 2.40 |
Weighted Average Exercise Price, Vested or expected to vest at December 31, 2020 | 2.36 | |
Weighted Average Exercise Price, Exercisable at December 31, 2020 | $ 2.36 | |
Weighted Average Remaining Contractual Life (In Years), Outstanding at December 31, 2020 | 2 years 8 months 19 days | |
Weighted Average Remaining Contractual Life (In Years), Vested or expected to vest at December 31, 2020 | 2 years 8 months 27 days | |
Weighted Average Remaining Contractual Life (In Years), Exercisable at December 31, 2020 | 2 years 8 months 27 days |
Stock Compensation (Schedule _2
Stock Compensation (Schedule of Allocation of Non-Cash Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $ 158 | $ 551 |
Cost of Revenues [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | 16 | 25 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | 42 | 85 |
Selling, General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $ 100 | $ 441 |
Stock Compensation (Schedule _3
Stock Compensation (Schedule of Key Assumptions of Fair Value of Stock Options Granted) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Risk free interest rates, minimum | 0.30% | 1.77% |
Risk free interest rates, maximum | 2.48% | |
Expected volatility, minimum | 69.60% | 41.70% |
Expected volatility, maximum | 49.20% | |
Expected term (in years) | 5 years 6 months | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 6 months | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 4 years |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||
Equipment purchases commitments | $ 196 | |||
Demand letter for payment | $ 0.9 | |||
Consumer Night Vision, accrued invoices | $ 1 | |||
Fully vested service period | 5 years | |||
Percentage employer matches employee contributions | 50.00% | |||
Percentage employer matches to a maximum qualified compensation | 3.00% | |||
Employer contributions | $ 0.1 | $ 0.1 | ||
Government Funding [Member] | ||||
Loss Contingencies [Line Items] | ||||
Equipment purchases commitments | $ 3.5 |